Vietnamese banks are registering improved profitability levels in the first quarter, reflected in improved profitability indicators such as return on equity (ROE) and return on asset (ROA), according to the State Bank of Vietnam (SBV).
The State Bank of Vietnam.
|
Meanwhile, ROA of joint stock commercial banks jumped to 0.28% from the previous rate of 0.13% in the first quarter of last year and is higher than that of state-run banks. The group's ROE was reported at 3.72%, more than double last year's rate of 1.75%.
ROA and ROE of joint venture banks also improved slightly compared to the same period of last year, standing at 0.33% and 2.08%, respectively.
A recent survey conducted by the SBV showed that around 88% of credit institutions expect to have a higher pre-tax profit in 2018 compared to 2017, while the average profit growth of the banking system is predicted to increase 19.05% year-on-year in 2018.
The survey also showed that 67.4% of credit institutions saw improvement in their business performance in the second quarter compared to the previous one, in which 18.8% stated "much improvement".
Moreover, 76.1% of credit institutions expected the general business conditions of the banking sector to be improved in the third quarter and 82.6% predicted improvement in 2018 compared to 2017. Of the latter rate, 20.7-32.6% looked forward to "much improvement."
It is expected that by the end of 2018, the bad debt ratio will be kept at a low rate and most credit institutions will have a lower bad debt ratio compared to the end of 2017.
Additionally, liquidity of the banking system continues to improve, and it remains in a good state for both foreign and domestic currencies, which is expected to be extended in the upcoming quarter and for the whole year.
